New York, May 13--Martha Stewart is in talks with the U.S. Justice Department about settling its insider trading probe, the Financial Times reported Monday on its Web site.
However, a deal could be weeks away and could be difficult to achieve, the report said, citing people close to the negotiations.
Lawyers representing Stewart, the chairman and chief executive of Martha Stewart Omnimedia Inc., met prosecutors for talks as recently as last week.
People close to the investigation say the Justice Department has had difficulty making a case for insider trading against Stewart. It has lately focused instead on lesser allegations that Stewart obstructed the investigation.
One possibility would be for the Justice Department to drop its case and leave Stewart to face civil charges and a potentially heavy fine from the SEC.
